E5 UNCLASSIFIED t PAGE 01 ACTION EUR-01 INFO LOe-00 cll IE-00 DS-00 vc-01 MCO-01 oMB-o1 scT-00 sNrs-00 MOSCOW O7LO7 NP OO INL-o1 EB-00 01 0F 03 AIOLOZ AGRE-OO AID-OO DODE-OO DOEE-OO EXME-oo E-00 cEA-01 crAE-00 ITCE-OO DOTE-OO FAAE-OO gBIE-OO TEDB-OO INR-OO ITC-01 L-00 AC-o1 PM-00 NRRC-OO NSAE-OO NSCE-00 PRS-00 ACE-00 USIB-OO DRr-02 P-00 sA-01 ERB OO H-01 MOFM-o4 MOF-o3 oPIC-ol PA-00 sP-00 rRM-00 sso-00 Nrsc-oo PMB-00 Dscc-oo NF'AT-OO RELEASED IN FULL Ncr AssIFIED PTQ7816 '_ 3 _ _ - _ _ 2 _ o 2309482 AR 00 ru AI EMBASSY OSCO I sTR-00 PRM-o1 _ _ _ _4 2 8 AA6 zAtOtLZ 38 TO SECSTATE WASIIDC IMMEDIATE 9890 INFO USD@ IIASHDC DEPT OF TRF ASURY WASHDC CIS COLI BCTI IE MOSCOW POTITICAL COLLECTI IE rrNcIAs sBcTroN 01 0F 03 Moscow 007107 SENSITIVE sTe rE FoR S NIS ertR nus s Nls c EBloMA STATE PASS NSC FOR MEDISH usDoc FoR 1003 mGLrcKr T'NCI ASSIFIED PAGB 02 MOSCOW O7LO7 01 0F 03 2AtOtOZ usDoc FoR 4231 TEp EVR OEERTS RrSD IBROUGHER TREAS FOR LEE E o 12958 N A TAGS ECON PGoV RS SUBJECT PUTIN'S ECONOMIC AGENDA A REVIEW OF HIS PREELBqTION ST ATEMENTS 1 U THIS CABLE IS SSNSITI rE BUT UNCT ASSTFIBD PLEASE PROTECT ACCORDINGLY - NOT FOR INTERNET DISIB IBUTTON 2 SBU SI MI'IARY WHILB ACIING PRESIDENT PUTIN HAS HELD BACK FROM PRESENTI IG A COMPREHENSIVE ECONOMIC PROGRAIC BEFORE SttlDAY'S ELECTTON HA HAS COMMENTED TJMTED STATES DEPARTIVTEM OF STATE REVIEW ATiTIIORITY FRINK H PEREZ DATE CASE ID 04 SEP 2A07 2W702380 UNCLASSIFIED SMEC-00 SRPP-OO U TED-OO c-00 I INCLASSIFIED EXTENSI IELY ON ISSUES REI ATING TO THE RUSSIAI ECONOMY THESE STATEME TS -- soME CLEIARLY CAREFULLY cALcur ATED OTHERS MORE OFF THE CUFF -- SHOW A CAIIDIDATE I IIO IS TRYTNG To BE ALt THINGS To AlL PEoPLE BIrr AlSo PRovrDE A I INT OF THE THEMES THAT ARE MOST IMPORTA IT TO RUSSfA'S LIKETY NE I LE ADER CHIEF AI ONG THEM THE NEED TO CREATE A STABI E AND ASSI'RED LEGAI ENVIRONMENT FOR FORErcl Al D OTHER rII ZESTMENT TO COMBAT CRrME A rD CORRT'PTTON TO ASSURE TITE BQUALITY OF AI t BEFORE THE LAW TO REDUCE pO tERTy AllD TO ENABLE RUSSIA TO STAIID ON ITS OIIN TWO EEET AI D REDUCE ITS DEPENDENCE ON TMPORTS WHII E PIITIN HAS EMPIIASTZED HIS DESIRE TO AVOID ltAI rNc PRoMISES THAT HE CAIINOT KEEP HrS AGENDA IS E KTREMELY AMBITIOUS A iID WTLL BE DIFFICULT TO FT'LtY IMPI EMENT E D SUMIIARY UNCI ASSIFIBD PAGE 3 03 MOSCOW O7L07 01 0F 03 2AtOLOZ SBU NO PIATFORM DESPITE ON AGAIN OSF AGAIN PROMISES TITAT HE WOU D DTSSEMINATE A PLATFORM BEFORE THE 4ARCB 26 ELECTION pIItrN HAS DECTDED AGAINST DOrNc so CLEARLY CALCUTATING TITAT HE HAS MORE TO LOSE I'HAlr GArN SETTING Up SUCH A TARGET IN INTERVIEWS ptlrrN HAS FORTHRIGHTLY REFUSED TO DISCT'SS IN DETAIL HIS POST ELEqIION pLAlfS WAIT AIID SEE HE TOLD INTERVIEWERS FROM KO O ERSAIiIT IN AII INTERVISW E ARI IER THIS MONTH IN ADDITION PUTIN HAS REFUSED TO PARTICIPASE TN DEBATES OR AIR TELEVISION COMMERCTAIS ARGUTNG THAT TO DO SO WOULD FORCE HIM INTO 'ICROSSTNG THE LINE'' TO T TAICE UNFULFIrJ ABr E PROMISES SOMETHING HE rS UNWTLLTNG TO DO INSIEAD trE TOLD RjADIO MAYAI ON lllARCH 18 AS CHAIRMAI OF THE GO ZERNMENT Al D ACTING PRESIDENT I M 'ST FITLFILL THOSE PROMISES THAT ARE GIVEN IN Ot'R LEGISLATTONT AND I HERE POSSIBLE EXCEED THESE PROMISES 4 SBU CAIIPAIGNING BY DOING BEYOND THESE OCCASIONAT MEDIA APP ARiN CES PUTfN'S CHOSEI I IEHICLE FOR coMlRtNrcATrNc A MESSAGE To THE RUssIAl PEoPLE IrAs BBEN THROUGH CERRYING OIII HIS PRESIDENTIAI RESPONSIBILITIES PROFITING FROM THE WAI L-TO-WAI L TELEVISION COVERAGE TIIAT ACCOMPA ITES HTS EVERY MO ZE IN THESE PUBLIC APPEARANCES p IIrN HAS ADB EXTSNSTVS tHOUcH STIrJ LARGEtY GENERAI COMMENTS ABOUT RUSSTA'S BCONOIUf WHTI E CL ARLY TAII ORED TO I HAT HIS AUDTENCES IISH TO HB AR TAIGN TOGETHER THEY ALSO PROVTDE INSIGHT INTO PUTTN'S BASIC ECONOMIC MINDSET UNCLASSIFIED UNCLASSIFIED T'NCI ASSIFIED PAGE 04 MOSCOW SOCI AI SECURITY 5 07107 01 0F 03 2ALOLOZ A RECURRENT POINT OF PUTIN'S HAS BBEN THE NEED TO ADDRESS PO IERTY IN RUSSLA THB THEME ITAS OBVIOUS REsoNAlIcB GI ZEN THE DETERToRATIoN oF LTVING STAIIDARDS IN RECENT YEARS Al D THE FACT THAT A QUARTER OR MORE OF AI L RUSSLA TS LI IE AT OR BELOI THE PO IERTY LB ZEL PUTIN IiAS BEEN CAREElrt HOI E IER TO STRESS THAT THERE IS NO MAGIC WAND HE CAN WAVE TO A s HIS RMI GENNADIY ZYUGAI IOV ltAS PROMISED RAISE PENSIONS 100 PERCENT OR MORE INSSF AD HE HAS KEPT HIS PROMISES RP AIISTIC NOTING THAT THE GOVERNMENT RAISED PSNSIONS NOT ONLY BY THE INITIAILY-PROMTSED 12 PERCENT BUT BY 20 PERCENT OVER-FUI FTLLTNG HIS PROMTSE A ID HELPING FIXED-INCOME PENSIONERS CATCH Up A BIT WITH INFIATION THIS HE TOLD RADIO MAYAI IS HOW ONE UST ACT RATHER THA I O IERPROMTSING TO WIN VOTES PUTIN IIAS MADB MORE SPECIFTC COMMIIt ENTS TO PARTTCUT AR G ROtpS SUCH AS lfoRLD WAR TWO ETERANS WHO WILL RECETVE THREB MTNMTM PENSIONS IN APRIL B Ir AtL ARE CLEARLY WITHIN THE RF AIil OF POSSTBILITY DUE TO IIIGH PENSION COI LEqTIONS IORE GENERAILY HB HAS CATIITONED HIS LISTENBRS THAT THE PROBI EM OF INCRAASING SOCTAI SEST'RITY CAN ONLY BE RESOLVED By BNCOITRAGING ECONOMIC cROt TH IN RUSSIA NOT BY HKPAITDING EEDERAI BT'DGET EXPENDITURES SBU IMPRO TED INIIESTT EIflT CLruATE UNCIASSIFIBD PAGE 05 MOSCOW 07LO7 01 0F 03 2ALOLOZ T'NCI ASSIFIED UNCI ASSIFIED 07107 02 0F 03 PTQ 818 PAGE 01 ACTION ET'R-01 MOSCOW INFO LOG-00 NP-OO AGRB-OO AID-OO cm E-00 DS-00 INL-01 caa-o1 crAE-00 DODE-OO DOBE-OO ITCE-OO DOTE-OO EB-OO BXME-OO E-00 FAAB-OO FBIB-OO sRB-00 H-01 rEDE-OO INR-00 rTc-01 urED-00 L-00 MOFM O4 MOF-03 AC-o1 NRRC-OO oPrc-01 NSAE-OO NSCE-00 PA-OO PM-OO PRS-00 ACE-00 P-00 vc-01 MCO-01 oMB-01 24tOLOZ UNCLASSIFIED SMEC-00 SRPP-OO IINCLASSIFIED scr-00 sp-00 sso-00 sTR-00 usrB-oo sA-01 Nrsc-oo pMB-00 Dscc-oo pRM-01 DRL-02 c-00 sAs-00 lo2Lw --428A82 24LOL2Z 38 o 2309482 rAR OO F AMEMBASSY MOSCOIT TO SECSTATS WASIIDC IMMEDTAIts 9891 rNPO USDOC WASHDC DEPT OF TRAASURY IdASIIDC CIS COLLACTI IE MOSCOI POLITIE AL COLLEqrI IE 02 0F 03 MOSCOW 00710 UNCIAS SECTION SENSITI TE STATE FOR S NIS EI'R RUS S NrS C EB O A STAlts PASS NSC FOR MBDISH usDoc FoR 1003 DGr rcKr UNCIASSIFIED PAGE 02 MOSCOW 07107 02 0F 03 usDoc FoR 4 2 3 1 Tr p EVR OEERT S RrSD TRE AS FOR IEE 2ALOLOZ TBROUGHER E o L2958 N e TAGS BCON P@V RS SttBitECT P XIIN'S ECONOMIC AGBNDA A REVIEIV OF HIS PREELECTION STATEMENTS 6 SBU PARTICUI ARLY NOTEWORTHY IN RECBNT EEKS HAS BEEN PUTIN'S FOCUS ON THE RUSSIAI IN ZESII ENT CLIMATE E ID THE IIEEDS OF FOREIGN A ID OTHER IN ZESTORS THIS IIA S BEBN PARTICUI ARLY STRIKING GIVEN THB LIMITED EI SCTORAL WEIGHT OF GROT'PS FOCUSBD ON THIS ISSUE PUTIN'S OPBNNESS TO MEBTING WITH BUSINESS A ID RECEPTIVENESS TO rTS NEEDS IIA ZE WON GUSHING TRIBIITES SROM A RJA IGE OF FOREIGII BUSINESS LEADERS IN ASSORTtsD MEETINGS pItTIN HAS REPE ATEDLY STRESSED LIBERAL ECONOMTC THEMES ON IARCH 13 FOR INSTAIICE HE TOLD THE FORBIGN INVES$I ENTS CONST'LTATIVE COI'NCIL THAT RECENT MONTHS HAVE SHOIIN THAT THE KEY TO ECONOMIC GROIYIH IS ''NiT INCRF ASE IN THE SCOPE OF ECONOMIC EREEDOM '' HE VO ED TO CONTINUE THAT IREND IN THE t'UrURE BY CLARIFYING THE RISKS COMPAIIIES PACE IN RUSSTA THROUGH FIGHTING CORRI'PTION COMPLBTING RUSSIA'S TA elID rN lESl tENt CODES AIID DEEEIIDTNG IN IESTOR RIGHTS AI D COMPA IIES' INTELTECTUAI PROPBRTY RIGIITS DITRING A BREjAl IN THE FORUM IIE COMMENTED TEAT ''I'NCONDITIONAI GUARANTEES OF O NERSHIP RIGHTS'' IS ONE UNCLASSIFIED sNrs-00 NFAT-00 UNCLASSIFIED OF TITE KEY CITATLENGES FACING THE RUSSIAI GOVERNMENT SMATT BUSINESS UNCI ASSIFIED PAGE 03 MOSCOW 07107 02 0F 03 ALOLOZ 7 SBU IN OTHER FORT'T'IS P ITIN HAS TALKED OF THB NEED TO REDUCE RUSSIA'S TA BT'RDEN A ID THB OPPRESSTVE I EIGHT oF rHE RUSSTAN BURB AUCRACY PARTICULARLY FOR S 'ALL BUSINBSS HIS PRESCRIPTIONS FOR RESOLVING SUCH PROBLEMS HAVE OCCASIONALLY BETRAYED A ''STA TIST MENTATITY HOI B ER TO trMrT THE TNTERMINABIE Al D ENDI ESS CHECKS'' TO I HICH SI IAI L BUSIIIBSS IS SI'BJECIED PUTIN TOI D A I AIL-RUSSTNI CONFERENCE ON SIIA LL BUSINESS IN MID-MARCH TIIAT HE SUPPORTED CRAATION OF A SINGI E ''SUPER-MINISTRY'' TO CENTRATTZr ALL SUCH CHECKS IN A SINGIB ORGAI IZATION SOME OBSENSZBRS ATTRIBUTED THB SUGGESTION TO PUTIN'S PAST LEADERSHIP OF THE PRESTDENTIAT CONTROL ADMTNTSSRATTON WI rCH pLAy D A SIMII AR ROLE THE ACTING PRESTDENT'S OTHER SUGGESTIONS WBRE MORE REASSURTNG TO HIS AUDTENCE HO E ER TNCLUDING THE NEBD FOR THE STATE TO ESTABLISH E ID OBSSRVE UNIFORM RT'LES OF PI AY IN THg IARKET A ID TO HELP FOSTER DE ZELOPMENT OF A RUSSTAN MIDDLE CIASS LAW BQUALITY AllD THE OLIGARCHS 8 SBU THIS PRINCIPI E OF EgUAIITY BEFORE THE I AW WITH THE NEED TO BATTLE CRII' E Al D CORRUPTf ON REMAINS A MAINSTAY OF PUTTN'S Pt'BLTC PRONOUNCEMENTS THB HAAD OF RUSSIA'S JUDICIARY EMERGED FROM A MEETING WITH PTITIN I AST VIEEK NOTING THAT THE ACTING PRESIDENT FULLY UNDBRSTOOD THE COTRTS' NEEDS AIID IdAS COMMITTBD TO INCREASING THE PAY OF i'I'DGES AIID BNST'RING THAT THE COURTS I AD THE SUPPLIES NEEDED TO DO THEIR i'OB TOGETHER T'NCI ASSIFIED PAGE 04 MOSCOW O7LO7 02 0F 03 2ALOIOZ RECENTLY HOltEf rER TIIE ISSITE OF EQUALITY HAS ASSIJIIED A SHARPER TONE IN PIIIIN'S IIITBRAI ICES AS HE HAS ATTEMP ED TO ASSURE HIS IISTENERS TIIAT HE WILt BE INDEPENDENT OF RUSSIA'S NOTORIOUS OTIGARCHS VTHOSE ROLE IN HIS ASCSNDAI CY REMAINS THE SI'BJECT OF WIDESPRAAD SPECUI ATION WHIIE INITIATLY CRYPTIC ON TI E SUB ECI-SAYING THAT AI t OLIGARCHS WOT LD BE KEPT EQUIDISTAIiIT FROM THE STATE-- PTTIIN SOON TOUGHBNED HTS RHETORIC HB WAS PARTICUI ARLY BLUNT IN HTS RADTO MAYAI INTERVTEW UNCLASSIFIED LTNCLASSIFIED srREssrNG THAT wHrLE HE woULD RET ATE To r Ecrrrr'tATE Brc BUSTNBSSMEN TUST AS HE DOES TO TIIOSB OF MORE MODEST scALE OLTGARCHS-- WHOM HE DEFINED AS THOSE WHO SEEK TO ''MESH THE STATE A ID CEPTT AL-- WILL NO LONGER EXIST AS A CLASS SELF RELIA ICE 9 SBU FINAI LY PUTIN'S MOST SRE9UBNT UTTERANqES HA TE STRESSED THB NEED FOR RUSSIA TO BE SBLF-RELTA IT A ID STAIID ON ITS OI N TwO EEET IN HrS COMMENTS TO FOREIGI I INVESTORS PUTIN WAS CAREFUL TO NOTE TITAT FOREIGN IN ESIIr ENT AIONE COULD NOT REVI E RUSSIA THAT MOBITIZATTON OF RUSSIA'S OIVII RESOURqES AI D PARTICUI ARLY RETT'RN OE CAPITAL THAT HAS FLOI N ABROAD IS ORE CRITICAS TO THIS POINT I E HAS ADDED THE NEED FOR RUSSIA IS TO SUPPORT DOMESTTC PRODUCERS NOTING IN VORONEZH THAT AEROE'IOT SHOULD BT'Y ILYUSHIN PI A IES RATHER TTIA I BOEINGS HE ALSO SAID THERE TIIAT RUSSTA UNCIA SSTFIED PAGE 05 MOSCOW 07x07 02 0F 03 24LOLOZ UNCI ASSIFIBD TTNCLASSIFIED PAGE 01 ACTION EUR-01 MOSCOW INFO LOG-OO NP OO 07x07 03 0F 03 AGRE-OO AID-OO PTQ7819 2ALOLLZ cE a-o1 CIAE-OO INL-o1 DODE-OO DOEE-OO ITCE-OO DOTE-OO DS-00 EB-00 EIO E-oo B-00 PAAE-OO rBIB-OO vc-01 sRB-00 H-01 TEDB-oo r R-o0 rrc-01 MCO-01 MOFM-o4 MOF-03 AC-01 NRRC-OO NSAE-OO oMB-01 0Prc-01 PA-00 PM-00 PRS-00 ACE-00 scT-00 sP-00 sso-00 sTR-00 usIE-00 sA-01 Nrsc-oo PMB-00 Dscc-oo PRM-01 DRL-02 c-00 sAs-00 lo2Lw --428'AB9 24LOL2Z 38 o 2309482 AR OO l' l AIr EMBASSY MOSCOW CI TE-OO TO SECSTATE WASHDC IMMEDTATE 9892 INFO USDOC WASHDC DEPT OF TREASURY WASHDC CIS COLLECTI IE POLITICAI MOSCOW COLLEqTI ZE UNCLASSIFIED SMEC-00 SRPP-OO USED-OO L-00 NSCE-00 P-00 sNIS-00 NSAT-OO uNcras sEcTroN 03 0F 03 MOSCOW LINCLASSIFIED 00 10 SENSITI IE STATE FOR S NrS BUR nUS STATE PASS NSC FOR MEDISH S NrS C SSlOl tA usDoc FoR 1oo3 JKALICKI T'NCIASSIFIED PAGE 02 usDoc FoR Moscow 0 107 03 0F 4231 rBp EIJR OEERT SREA S FOR LEE S 03 24LOLLZ RrSD aTBROUGHER E o 12958 N a T e cS ECON P@V RS SUBiIECT PIIIIN'S BCONOMIC AGENDA ELECTTON STATEMENTS A REVTSW OF HIS pRE- CA T STOP IMPORTING SUGAR Al D SOME OTHER FOOD PRODUCTS ''IiIB WILL NOT CLOSE OUR I''ARKET COMPLETELY HE EXPT AINED BIrt MUST HA ZE A CL ARER pOLrCy TO PROTECT DOMESTIC PRODUCERS ' WHILE THESB COMMENTS PROVOKED CONSTERNATION TN TRADING CIRCI ES AIID SKEPTTCAI COIA ENT IN SOME NEWSPAPERS THEY pIAyBD I ELL A dONc THB GENER AL PUBLIC AlitD PARTICUI ARLY AITONG THE RUSSIAII WORKERS TO WHOM THEY I BRE ADDRESSED COMMENT 1 0 sBu mILE MOST OF PUTIN'S PRE-ELECTION COMMENTS ARE CLEARLY Al lD UNSITRPRISINGLY CAI CULIIED TO AppF At TO HIS LISTENERS THEY DO PROVIDE A NITMBER OF HrNTS TO HIS FUTURE PROCtMTIES DESPITE HrS OUTRIGHT REFUSAT TO DISCUSS MOST SPBCIFIC ME ASURES MOST INTERESTING IIAS BBEN HIS CONCERTED PITCH TO FOREIGN IN ESTORS THBRE rs Lrrrr E PolrrrcAl GArN rN sucH coMMrTb ENTs FoR PUTIN GI IEN THAT THE PORTION OF THE ELECIORATE ATTUNED TO SUCH ISSUES rS RETATMLY SltAtL UNLESS HE HOPES TO USE HIS PRESI'MED VICTORY TO CTAIM A MAI DATE FOR CONTINT ED PURSUIT OF LIBER AL REFORT' S AIMED AT IMPROVING UNCIASSIFIED PACB 03 MOSCOW 0 10 03 0F 03 2ALOLLZ RUSSIA' S III 'EST IENT CLIMATE CONVERSELY By COI'RTING FORETG N IIV ZESTORS HE RISKS E POSING HI ISELF TO CHARGES HE MIGHT ''SEtL OII RUSSIA HTS STRONG NATTONAIIST POSITIONING IIAS PBRII APS TIEI PED FORFEND SUCH ATTACKS FROM THE I EFT LINCLASSIFIED UNCLASSIFIED 11 SBU COUNAERBAIANCING THESE LXBERAI I BA IINGS HolNEf iBR' ARB @cAsIoNAl AllAcHRoNIsTIc STATBMENTS sUcH AS 1TIB SUGGBSTION OF A E9r MINISTRY OF CONTROL FOR BUSIITESS A M' IBER OF ECONOMISIS VIHO HAT'E BEEbr IO GREATER OR I ESSER DBGREES CIAIMING TO BE ADVISING HIM ARGITB THAT I HTLE pIt' IIN rS NO BCONOMIST HE DOBS FUIIDAI ENTAILI BBLIE ZE IN MODERNTZATION THE BXTEITT TO TNHICH HIS CONCEPT OF MODERNTZATION TRANSIATES INTO TIIE KTND OF REFORM INHICH IIAS SO FAR PROVBD ETUSI TE IN RUSSr e REMATNS TIIB BASIC XSSUA BIII SO FeR AT I E AST PUTIN'S REFUSAL TO OVBRPROMTSE HAS ENABI BD HIM TO AVOTD THB TRAPS AN EI EqITON CEMPAIGT POSES EITD COMMENT I'NCIASSIFIED EIID OF DOCIilENT UNCLASSIFIED